Subject to regulatory approval, the acquisition by Cinven-owned subsidiary Ergo Italia is expected to be finalised within six months.
Paul Feeney, chief executive of Old Mutual Wealth, said: “Old Mutual Wealth Italy is a strong, successful and profitable business that has made a positive contribution to Old Mutual Wealth in recent years.
“I am extremely proud of the Italian team and what they have achieved. I believe that the growth prospects of Old Mutual Wealth Italy will be enhanced under Cinven and Ergo Italia’s ownership.”
Launched in 1997, Old Mutual said its Italian operations manage over €7bn for more than 53,000 affluent and high net worth customers, describing the business as a “leading independent unit linked provider in the financial adviser market”.
The post-tax adjusted operating profit for the year ended 31 December 2015 was €22m.
Old Mutual split
In statement on Tuesday, the insurance giant said the sale represents the “final part” of its plan to split the company into four separate units by 2018.
The cost-cutting exercise, announced in March, will allow Old Mutual to “focus on its core UK and cross border markets”, said the firm.
The insurer confirmed that the break up will include separating the firm into South African bank Nedbank, UK wealth manager Old Mutual Wealth, OM Asset Management and Old Mutual Emerging Markets, as it believes they will perform better independently.
Earlier in the year, it was reported that a number of US private equity firms were preparing bids for Old Mutual’s wealth division, with Cinven and Warburg Pincus considering a joint bid for London-based unit.
It comes as the company’s UK advisory business Old Mutual Wealth Private Client Advisers (OMWPCA) confirmed on Monday that it has acquired financial adviser, Beaumont Robinson.
The buyout, which is subject to regulatory approval, will add over 850 clients to OMW’s private client platform and expand its assets under management (AUM) by £250m.
In June, OMWPCA also bought British financial planning firm DQS Financial Management.